Engineering Now!

Business Insight
13/06/2016

If you’re in engineering, you’re a pretty hot property right now. Not only is your skill set one of the most in-demand in the country, you’re in a powerhouse profession that’s driving the nation’s economy.

Yes, engineering is in top gear and firing on all cylinders, according to the industry’s EngineeringUK which says the sector is 68% more productive than retail and wholesale: and apprentices are doing their significant bit too.

The good news comes from this year’s The State of Engineering report, the annual analysisofthe sector’s capacity and capability for growth.What’s more, says EngineeringUK, an independent group that promotes the contribution of engineers, engineering and technology to society, the drive is having a big positive impact on the rest of the economy.

For every new job in engineering, two more are created outside of the sector, and every £1 Gross Value Added generated in engineering generates £1.45 elsewhere.Over 27% of total UK Gross Domestic Product is generated by engineering, amounting to £445.6bn.

Meanwhile, turnover for engineering has grown by 3.4% to £1.21tn and employment in the industry has grown to over 5.5 million, with the profession now supporting 14.5 million jobs overall.

Clearly much to celebrate - but there is reason to pause for thought. The gap between supply and demand for those with engineering skills is still large enough to cause widespread concern for the long term.

Paul Jackson, Chief Executive of EngineeringUK, says: ‘Engineering is a growth industry that has the potential to continue to drive productivity in the UK. “This is a great opportunity, tempered only by concern about the need to train many more engineers if we are not to be left behind by countries like South Korea and Germany.”

The most recent figures show that engineering accounts for a quarter (24.9%) of UK turnover, a welcome 9% higher than at the start of the recession. However, further research has shown that engineering companies will need 182,000 people with the relevant skills per year up until 2022, and there is already an annual shortfall of 55,000.

If the country fills the demand for new engineering jobs,experts predict that an additional

£27 billion per year could be generated for the UK economy after 2022.

As part of industry and government moves to address the problem, greater emphasis is being placed on attracting young people, particularly girls, into the profession.Nick Boles MP, Minister of State for Skills, says: “I am convinced we will only overcome these challenges if all those with an interest in UK engineering commit to greater collaboration and partnership.”

Chairman of Crossrail, Terry Morgan CBE says: “In the past ten years, engineering-related apprentices have generated £12bn for the UK economy. Having started my career as an apprentice and seen first-hand what apprenticeships can deliver, I’m delighted that their very significant contribution has been recognised.

“If we are to double the number of apprentices in engineering, more needs to be done to highlight the opportunities apprenticeships can offer.”

Through the Tomorrow’s Engineers programme the industry is working to inspire the next generation of engineers by helping young people from all backgrounds understand the variety, excitement and opportunities presented by a career in engineering.

EngineeringUK has added its collective industry voice to calls for collaborative action across government, engineering businesses, the education sector and the wider engineering community to realise the following recommendations.

• A doubling of the number of young people studying GCSE physics as part of triple sciences and a growth in the number of students studying physics A level (or equivalent) to equal that of maths. This must have a particular focus on increasing the take-up and progression by girls.

• A two-fold increase in the number of Advanced Apprenticeship achievements.

• A doubling of the number of engineering and technology and other related STEM (Science, Technology, Engineering and Mathematics) and non-STEM graduates who are known to enter engineering occupations.

• Provision of careers inspiration for all 11-14 year olds. This should include opportunities for every child in that age bracket to have at least one engineering experience with an employer. This inspiration must highlight high value placed on STEM skills and promote the diversity of engineering careers available.

• Support for teachers and careers advisors delivering careers information so that they understand the range of modern scientific, technological and engineering career paths, including vocational/technician roles.

These measures should help to promote the image of engineering as an aspirational career choice for some of our brightest young people to carry the country’s innovation and productivity into the future.